Ethics and the Conduct of Business - PowerPoint Presentation

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Ethics and the Conduct of Business - PPT Presentation

Eighth edition Chapter 12 Corporate Social Responsibility Copyright 2017 2012 2009 Pearson Education Inc All Rights Reserved Modules Introduction Corporate Social Responsibility 121 The CSR Debate ID: 662126

social csr education 2012 csr social 2012 education reserved rights 2017 2009 pearson copyright case fair trade nonprofit profit

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Slide1

Ethics and the Conduct of Business

Eighth edition

Chapter 12

Corporate Social Responsibility

Modules

Introduction: Corporate Social Responsibility12.1: The CSR Debate

12.2: Normative Case for CSR12.3: Business Case for CSR

12.4: Implementing CSR

12.5: Business with a Mission12.6

: Case

Studies

Conclusion: Corporate Social Responsibility

Learning Objectives (1 of 2)

12.1: Recognize the significance and implications of corporate social responsibility for businesses, how CSR is commonly

demonstrated, and its related concepts12.2: Describe the dominant moral arguments against the concept of CSR and the counterarguments and justifications for CSR as a requirement of companies

12.3: Analyze the arguments that a market for virtue makes CSR a profitable strategy and a source of competitive advantage

ReservedSlide4

Learning Objectives (2 of 2)

12.4: Summarize the important aspects of successful CSR programs, the difficulties with measuring the social performance of companies, and various attempts at measurement

12.5: Compare how nonprofit and for-profit social enterprises operate and can compete successfully in the marketplace12.6:

Compare how nonprofit and for-profit social enterprises operate and can compete successfully in the marketplace

Introduction: Corporate Social Responsibility

Basis for social responsibilityRequirements to implement CSR programsBenefits of CSR programs

12.1: The CSR Debate (1 of 2)

Objective: Recognize the significance and implications of corporate social responsibility for businesses, how CSR is commonly demonstrated, and its related concepts

12.1.1: Meaning of CSRConcept of CSR

ReservedSlide7

Figure 12.1

12.1: The CSR Debate (2 of 2)

Objective: Recognize the significance and implications of corporate social responsibility for businesses, how CSR is commonly demonstrated, and its related concepts

12.1.2: Examples of CSRGeneral agreements

12.1.3: Related ConceptsCorporate social responsivenessElements of corporate social

performanceCorporate citizens

ReservedSlide9

12.2: Normative Case for CSR

Objective: Describe the dominant moral arguments against the concept of CSR and the counterarguments and justifications for CSR as a requirement of companies

12.2.1: Classical ViewExpression of classical view

12.2.2: Friedman on CSRFiduciary argumentTaxation argument

12.3: Business Case for CSR (1 of 2)

Objective: Analyze the arguments that a market for virtue makes CSR a profitable strategy and a source of competitive advantage

12.3.1: The Market for VirtueFactors that induce managers to take on CSR activities

Power of virtue

Table 12.2: A Watch List of Industries and Companies

Industries

Issue(s)

CompaniesConsumer goods: shoes, apparel, and household products

Goods are manufactured in contract factories overseas.Nike, Gap, Walmart

Petroleum, timber, and mining

Environment issues

Shell, Home Depot, Rio TintoFood and beverage

Raw materials are sourced from less-developed countries.

Starbucks, Nestlé, Coca-Cola

Tobacco and fast foods

Tobacco-related deaths and obesity

Altria (Philip Morris), Kraft, McDonald’s

12.3: Business Case for CSR (2 of 2)

Objective: Analyze the arguments that a market for virtue makes CSR a profitable strategy and a source of competitive advantage

12.3.2: Competitive AdvantageStrategic CSR

ReservedSlide13

12.4: Implementing CSR

Objective: Summarize the important aspects of successful CSR programs, the difficulties with measuring the social performance of companies, and various attempts at measurement

12.4.1: Program Selection and Design

Guidelines12.4.2: Reporting and AccountabilitySocial reporting

12.5: Business with a Mission

Objective: Compare how nonprofit and for-profit social enterprises operate and can compete successfully in the marketplace

12.5.1: Social EnterpriseDefinition

Forms12.5.2: Competing SuccessfullyOverview

12.5.3: Mission and TrustFor-profit organization

ReservedSlide15

Table 12.3: Nonprofit versus For-Profit Social

Enterprises

CategoriesNonprofit SE

For-Profit SEDefinition

A nonprofit whose main source of revenue is earned income, not donationsA business created for a social purpose, that operates in a socially-beneficial manner

AKA

Enterprising nonprofits, commercial nonprofits

Possible forms:

subsidiary of a hybrid nonprofit

benefit corporation (community interest company)

Certified B Corporation

Example(s)

Benetech

(technology to aid global literacy)

Patagonia (environmentally-sustainable clothing)

Toms Shoes (donates shoes to the needy)

Available funding

Sales, donations, loans

Sales, equity capital, impact investment

Advantages

Tax benefits

Income from donations

People have more confidence in nonprofit causes

Equity capital allows faster growth, more effective use of resources

Ability to make a profit

Challenges

Need for innovation

Pressure to use donations for given purposes

Limits on spending

Sales, equity capital, impact investment

Need for innovation

Pressure to give some control to outside investors

Difficulty keeping focus on social mission over profit

Loss of public trust

12.6: Case Studies (1 of 2)

Objective: Compare how nonprofit and for-profit social enterprises operate and can compete successfully in the marketplace

12.6.1: Case: Starbucks and Fair Trade CoffeeMission

IssueFair trade coffeeStarbucks

ReservedSlide17

Table 12.4: Requirements for Fair Trade Certification

Condition

Description

Fair pricesDemocratically organized farmer groups receive a guaranteed minimum floor price and an additional premium for certified organic products. Farmer organizations are also eligible for pre-harvest credit.

Fair labor conditionsWorkers on Fair Trade farms enjoy freedom of association, safe working conditions, and living wages. Forced child labor is strictly prohibited.

Direct trade

Importers purchase from Fair Trade producer groups as directly as possible, eliminating unnecessary middlemen and empowering farmers to develop the business capacity necessary to compete in the global marketplace.

Democratic and transparent organizations

Fair Trade farmers and farmworkers decide democratically how to invest Fair Trade revenues.

Community development

Fair Trade farmers and farmworkers invest Fair Trade premiums in social and business development projects such as scholarship programs, quality-improvement training, and organic certification.

Environmental sustainability

Harmful agrochemicals and GMOs are strictly prohibited in favor of environmentally sustainable farming methods that protect farmers’ health and preserve valuable ecosystems for future generations.

12.6: Case Studies (2 of 2)

Objective: Compare how nonprofit and for-profit social enterprises operate and can compete successfully in the marketplace

12.6.2: Case: Timberland and Community Service

Commerce and justiceCity Year nonprofit organizationCommunity service program

Change in economic situation12.6.3: Case: Coca-Cola’s Water Use in IndiaGroundwater depletion case

ReservedSlide19

Conclusion: Corporate Social Responsibility

Meaning of CSR Arguments for CSRNormative case for CSRVirtual industryStrategic CSR